Corning in niche OEM acquisition

JasonMargolis

CORNING, N.Y. (CBS.MW) -- Corning announced Tuesday that it has agreed to purchase Tropel Corp. for roughly $190 million in stock and cash.

Corning
GLW, -1.01%
will pay approximately $60 million in cash and issue 1.95 million shares of common stock, based on Monday's closing price of $67.63.

Corning's shares were trading down 68 cents to $66.93 in recent action.

Tropel builds precision optics and meteorology instruments as an original equipment manufacturer serving the semiconductor industry. Corning is primarily known as a maker of optical-fiber, cable and photonic products for the telecommunications industry, but it also turns out products used in the semiconductor and environmental industries.

Fairport, N.Y.-based Tropel's products will be used to increase Corning's semiconductor and microlithography optical businesses, part of its specialty materials division.

The deal should be completed by the end of the first quarter, pending regulatory approval. Corning said it expects the deal to be neutral to 2001 earnings and to be accretive beginning in 2002.

John Burning, Tropel's chief executive officer, will continue to head the new business, which will be called Corning Tropel.

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